Old Head of Kinsale Well

Island Oil and Gas PLC
31 May 2007



31 May 2007


                 OLD HEAD OF KINSALE WELL REACHES TARGET DEPTH

                AND ENCOUNTERS THE ANTICIPATED GAS-BEARING SANDS


Island Oil & Gas plc ('Island' or the 'Company') today announces that, following
the completion of wireline logging operations, Island-operated gas appraisal
well 49/23-2 ('Well 49/23-2') on Exploration Licence 4/05 (the 'Old Head of
Kinsale') in the Celtic Sea, offshore Ireland, has successfully encountered
gas-bearing reservoir sands. Preliminary interpretation of the well results
indicate the following:


•Reservoir continuity with the gas sands encountered in Well 49/23-1,
3 kilometers to the NE;

•Reservoir permeability in line with Well 49/23-1;

•A gas-water contact within 5 feet of that extrapolated for Well 49/
23-1, thereby validating the presence of a 100 foot gross gas column for the 
Old Head of Kinsale gas field.


Well 49/23-2, which was spudded on 16 May 2007, was drilled to its planned total
depth in just 11 days, well ahead of schedule and under budget. Island will 
now drill a sidetrack hole (49/23-2z) from the existing well bore. The 
objective is to maximise potential gas deliverability to ensure that any 
future gas production from the field can be achieved at the highest possible 
rates. Testing operations are anticipated to commence on completion of the 
sidetrack well.

Island has a 65% interest in the Old Head of Kinsale, where it is partnered by
Valhalla Oil and Gas Limited and EnCore Oil plc.

Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]

Paul Griffiths
Chief Executive
Island Oil & Gas plc

Tel: [phone]


Notes to Editors:

Island was founded in 2003 and listed on AIM in December 2004 (LSE:IOG).  The
Company has interests in eleven Irish offshore licences, as well as licences in
the Netherlands and Morocco.   Island is involved in an exploration and
appraisal programme which in 2006 saw successful Celtic Sea gas wells at the Old
Head of Kinsale and the Seven Heads Sub-Area.  The Company has again secured the
Petrolia rig for its 2007 Celtic Sea drilling programme. This commenced in the
second quarter of 2007 with an appraisal well at the Old Head of Kinsale gas
field, which is to be followed by an appraisal well at the Schull gas field.

This drilling update has been reviewed and approved by Paul Griffiths, Chief
Executive of Island.  Paul Griffiths is a geology graduate of the Royal School
of Mines, Imperial College London, and is a member of the Petroleum Exploration
Society of Great Britain. He has 30 years experience in the oil and gas
exploration sector and is a qualified person as defined in the guidance note for
Mining Oil & Gas Companies, March 2006 of the London Stock Exchange.

Further information on Island can be found on the Company's website at http://
www.islandoilandgas.com.




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